Why do Forex Traders lose money?

[kemer roach]

It’s true; most of the Forex traders lose their money by trading. I see, the main point is, lack of knowledge. Greed and emotion are also responsible for this problem. You may see, which traders are making money here they have good trading skilled and long time trading experience also. In Forex, knowledge is the main investment.

 

[EURUSD]

The problem is not losing money or getting profit in certain transaction because lose in trading is common thing. If the win is still more than loss, or if you're using good risk reward ratio then loss more than win is still possible to gain profit. So, the problem is not trader could face loss or not but how to manage profit and loss so your profit can be bigger than loss. There are many reasons which can make you lose money in trading, it can be caused by technically (wrong analysis, bad money management) or psychologically (too hurry, take revenge, etc.)

 

[Whitesnake]

The problem is not losing money or getting profit in certain transaction because lose in trading is common thing. If the win is still more than loss, or if you're using good risk reward ratio then loss more than win is still possible to gain profit. So, the problem is not trader could face loss or not but how to manage profit and loss so your profit can be bigger than loss. There are many reasons which can make you lose money in trading, it can be caused by technically (wrong analysis, bad money management) or psychologically (too hurry, take revenge, etc.)

Most of the traders fail in the forex trading business or lose their hard earned money to the highly risky forex market because they are unable to control their emotions. Its not that the traders are not technically or fundamentally sound but its the lack of emotional control due to which traders lose money.

 

[Froso@FXNET]

Most of the traders fail in the forex trading business or lose their hard earned money to the highly risky forex market because they are unable to control their emotions. Its not that the traders are not technically or fundamentally sound but its the lack of emotional control due to which traders lose money.

Emotions is one of fatal mistakes that doing every forex traders , cause from emotion we will get frustrtion , depression , anger then the tension will increase more higher , eventually will do revenge . with revenge our mind can not think relax and analysing the market not clearly . so this can make loss more bigger

 

[downtrend]

Trading with emotions won't bring anything but losses. If a trader follows proper strategy and uses good money management, then there is a very less chance of losing except for odd losers, which is a part of forex trading.

 

[arigoldman]

Trading with emotions won't bring anything but losses. If a trader follows proper strategy and uses good money management, then there is a very less chance of losing except for odd losers, which is a part of forex trading.

True, but it's almost impossible to leave your emotions at the door.

 

[FX Brother]

Trading with emotions won't bring anything but losses. If a trader follows proper strategy and uses good money management, then there is a very less chance of losing except for odd losers, which is a part of forex trading.

How can you stop your emotions? One who can do it - is he or she human?

 

[arigoldman]

How can you stop your emotions? One who can do it - is he or she human?

It is possible, but it takes practice, and if you don't have emotions in trading, chances are you are going to lack emotions in other parts of your life.

 

[simonnash]

It is indeed tragic that only 5% investors succeed in Forex market. The probable reason behind this is that most of the traders think of trading as gambling and enter into trade without sufficient knowledge, proper and defined strategies and stop losses. Another reason for losing money in Forex is impatience. You need a lot of patience to trade here. Many traders lose their nerves when they start getting into losses. Making money in forex is not easy. Forex is a hard affair because it is very risky. We need to learn first and if we start without learning, we can fall. If you want to be successful in forex business you must work hard every day in training, practicing, reading books, doing lot of technical and fundamental analysis. Forex trading needs good experience and serious work with a profitable strategy. Learn then earn principle works here.

 

[Kikkert]

I think that the reason is that these people do not have enough skills and experience, just deposit huge sums with a hope to get luck and win and in most cases, of course, they fail. Another reason is scam brokers who will never allow you to earn anyway, in any case....just stay away from them, the scam list which is presented here will help you.